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NKLA trends lowerNow its pretty to point out that NKLA at the moment is stay way stock for share buyers. Today NKLA pumped maybe trying to short out novice investors by "buying the dip." NEWS -GM says it wont move forward with NKLA, which is a smart play as Trevor Milton is being investigated -SPACS are rumor to be in a bubble and NKLA bubble poped from past FORD ceo interview TA -Well we are in a downtrend (no shit), so the pump today still goes along with the downtrend, with so much negativity I personally wont be buyer till $9, but support lines add up to 11.09-13.95, which may be the new trading range for a long period of time -RSI is below 39.1, which according to bullish price action it would have to stay above -MACD is flipping bullish, but news catalyist doesn't look so hot Final Thoughts I personally have no stake, not even a put. I would be a small buyer between 11.09-13.95, but I would wait till it dips under 11.09 creating "despair" in the market cycle, which could be absolute bottom. This range would last until theres a breakthrough or even sales that come in which would happen in 3-4 years. Again not a buyer here and wait for the final drop of probably Trevor dumping and hitting stop loses of swing traders and long term holders. Plus the EV market is tanking, so not a good buying opportunity.
NASDAQ:NKLAShort
by nathanielx9
Apollo Hospitals @2110 - Target 2400 and stop loss of Rs. 22Apollo Hospitals has approached it's multi year trend line negating covid turbulence from April to July. Historically, for Apollo Hospitals RSI has been a critical indicator suggesting whether to expect the trend line to be a Support or resistance. After the quarterly result blues are over, RSI indicates that stock is ready to approach and cross the multi year trend line if it holds above 2110 on closing basis. Very small stop loss can fetch 300 Rs upside in quick time. Good candidate for call buying also given recent down trend call pricing would be cheap.
NSE:APOLLOHOSPLong
by Pattern_Study
Bajaj Auto - Critical Decision Level @3100Bajaj Auto has been following a clear trend line with topside resistance. A parallel trend line with bottom matching makes it a 339 point channel. Ignoring the covid impact from April to July the stock has been properly following the channel and gives a great call / put buying opportunity with minimal time decay to premium as it arises just a week before expiry at closing price in the range of 3100. If the closing is above 3100 call for 3200 can give excellent return considering just 7 days to expiry and because it's a long trend channel break out the upside move shall be fast so results in prices can be seen before November expiry. If it retractes from 3100 then puts shall be available much cheaper rate due to last 3-4 days upwsing and hence put of 3000 can show immediate result before November series expiry.
NSE:BAJAJ_AUTO
by Pattern_Study
NIFTY 50 US ELECTION TRADE PLANHELLO EVERYONE! MY VIEW ON US ELECTION TRADE PLAN NIFTY50 RECENTLY BREAKED MAJOR SUPPORT ZONE AND ALSO WEEKLY TIME FRAME HIGH REJECTION AROUND 12000LEVELS WE CAN CONSIDER THESE RANGING LEVELS OF 11660 TO 12025 AS BOX FORMATION ON OVERALL HH'S AS PER TECHNICALS,IF BOX (RANGE)FORMATION FORMED ON HH"S MEANS IT WILL DEFINETELY BREAK DOWNWARDS IT PERFECTLY BREAKED DOWNWARDS AND MADE LL"S ON 4HR TF SO,PROBABLY THERE WILL BE A HUGE SELLOFF THIS WEEK IF NOT ENTERED BEFORE MEANS,SELL AT LH ON MONDAY ORELSE BELOW 11540 TARGET1-11270 TARGET2-11030 THANK YOU!
NSE:NIFTYShort
by GOKULAVARMA
Options buying and sellingI decided that before explaining complex strategies, I need to explain call options and put options and differences between buying and selling. (I'm adding down calls chart) The term "the option is worthless" meaning that the stock price didn’t finish above the strike price in calls or finish below in-puts. Buy Calls – Bullish “strategy”, you need to select a stock that will go up in price in a reasonable time. Limited loss (The maximum loss is what you paid for the option), theoretically unlimited profit. Buy Puts – Berish “strategy”, you need to select a stock that will go down in price in a reasonable time. Limited loss, theoretically unlimited profit. Selling Naked means that you only sell the option contract without owning the shares. 1 option contract equals 100 shares. Sell Calls (Naked) – In general, this a Berish “strategy”, but it depends. The seller wants the option to expire worthless, meaning all the value of the option will go to zero, the price of the stock needs to be at the expiration date under the strike price of the option. Theoretically unlimited loss, limited profit. Example: XYZ worth at the beginning $100 per share. The seller sold 1 option - Different calls: In the money option strike $95 worth - $6 ($5 intrinsic value + $1 time premium) At the money option strike $100 worth - $3 Out of the money option strike $105 worth - $1 In the money call sold – The seller sold a call at the strike price of $95 If the stock will finish anywhere below 95$ The call seller will profit $600 The stock has to go down at least $5 At the money call sold - The seller sold a call at the strike price of $100 If the stock will finish anywhere below 100$ The call seller will profit $300 The stock can be neutral or go down slightly. Out of the money call sold - The seller sold a call at the strike price of $105 If the stock will finish anywhere below 105$ The call seller will profit $100 The stock can be neutral or go down slightly or even go up in price and the seller will still profit. You should notice if the stock will go up in price large loss could happen. In theory, this loss is unlimited, in practice, the loss is limited by time. The stock cannot rise to infinity. Naked call selling is not the same as a short sale of stocks. While both have large potential risks, the short sale has much higher reward potential, but the call selling will do better if the stock remains at the same price. You can see from the example that the call seller can make money in situations when the short seller would have lost money. Covered call writing (selling) – I won’t go deep here, this means the seller of the option own 100 shares, the cover call writer is mildly bullish or neutral. People do this to decrease the risk of owning a stock or don’t believe the stock will go very high in price and they want extra profit. This limits the profit potential. Sell Puts (Naked) – In general, this a Bullish “strategy”, but it depends. The seller wants the option to expire worthless, meaning all the value of the option will go to zero, the price of the stock needs to be at the expiration date above the strike price of the option. Theoretically unlimited loss, limited profit. An example of selling puts is exactly the opposite of selling calls. The seller wants the stock price to be above the strike price of the option he sold. (Will show you down with another chart) What happens in the buyer and seller portfolio after expiration, several cases We will examine calls buy and sell if the stock finishes above the strike price of the option, for example, the strike price is 100 the stock finish at 105. The buyer needs to buy from the seller 100 shares ( 1 option contract) at the strike price, meaning he will need to have $10,000, but the stock is at 105. The buyer portfolio will be with 100 shares long at $100 with an unrealized profit of $500 minus the premium paid for the option minus commissions. The seller needs to provide those stocks, so he will be short 100 shares at $100, with a loss of (-$500) plus the premium he received from the buyer for the option, minus commissions. If the stock finish below the strike of the call option, the option is worthless and the buyer lost the debit he paid for the option, the seller received all the credit. No stock transaction is happening. Time – The more we get closer to expiration the greater the time decay, this is good for the seller and bad for the buyer, remember the seller wants the option price to go to zero, receive all the credit. Volatility – Raise in volatility is good for the buyer and bad for the seller, when volatility raises the option gets more expensive. If the option that was bought now worth more because of the rise in volatility the buyer profit from it. There is a lot more to say about this subject, every strategy has a different consideration that needs to be taken into account. Note: Naked option selling is usually a strategy for professional traders. Chart: Buy put – option price -> 129.4 , stock price -> 3286.33 , strike -> 3045, days -> 52 , implied volatility -> 47.4% (0.474), date-> 27/10/2020 Sell put – option price -> 127.25 , stock price -> 3286.33 , strike -> 3045, days -> 52 , implied volatility -> 47.4% (0.474), date-> 27/10/2020 Delta 0.3
NASDAQ:AMZNEducation
by ZoharCho
1
Why I booked profit on my shorts today?Context : As I explained in my post earlier, I expected strong selling in the zone 11380-11630. Remember this zone is where the shock moves started happening in February 2020. I actually did not trade much in the zone, but I started shorting around the upper range of the zone - around 11600. About Trade : I have been positional short from Sept 13, I bought Oct 29 PUTs to give me more time. But NIFTY moved in the anticipated direction. When I am sitting on profit, it is important to protect my profits. But also I should be careful of not being fearful . I did the following adjustments 1) I covered more than half of my position. 2) Remaining position I rolled below 200 points. I also hedged the same by selling even lower strike PUT of near expiry. All this ensured, I have taken profits. And then I am also in the trade. Downside is I won't be making large money if NIFTY continues to sell off in the next 2-3 days. Why did I booked some profit? 1) NIFTY made a very symmetrical move to the initial move, and many times, that makes traders to cover the positions. This means less momentum on downside. 2) There was a large 0.6%+ hourly bar at important support level - 11040. This also can be seen as a hammer in the 2hr chart. 3) Tomorrow is expiry. And because we had a large range month, it is not unnatural to have some confusing counter moves. It is better to step aside and just watch. References: Sep 13 Short Sep 3 Short Aug 28 Short
NSE:NIFTY
by Observe_Think_Act_Think